Thought we would give you an update on Obamacare –
While many are looking at this bill from 30,000 feet- we are “in the trenches” dealing with businesses and real people affected by this law.
Today we wanted to review what will happen to a single 50 year old –
- who makes $8/hour and works 40 hours per week.
- Let’s assume this person works as a dishwasher in a restaurant.
- Most restaurants don’t make enough to offer “affordable health care” to their lower paid employees.
One of three things will happen to this employee next year:
- His employer will offer him coverage that he can actually afford- perhaps $25/paycheck for a $500 Deductible- The employer will be paying an additional $5K per year for a person that is only making $16.6K per year THIS SCENARIO IS EXTREMELY UNLIKELY–
- The employer will cut the employees hours to 29 (so the employer doesn’t have a penalty if he doesn’t offer Medical Coverage)- the employee will lose about 28% of his income!
- The Employee can sign up for coverage on the exchange and pay $200 per month for a $1000 deductible plan
- If he DOESN’T purchase insurance- he faces a PENALTY in 2014 of approx. $166/year (it will go up to $322 in 2015, and $695 in 2016)
3. The employer will offer the employee “Affordable Care” – which means a $6000 Deductible at a cost of $132/Month!
- IF the employee declines his employer’s coverage- he will NOT be eligible for the subsidy and the $1000 Deductible plan on the exchange will cost $476/Month!!
- If he DOESN’T purchase insurance- he faces a PENALTY in 2014 of $166/year (it will go up to $322 in 2015, and $695 in 2016)